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Improving competitiveness and trade balance of Greek economy: a coopetitive strategy model

David, Carfì and Daniele, SCHILIRO' (2014): Improving competitiveness and trade balance of Greek economy: a coopetitive strategy model.

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Abstract

In the present work, we propose a coopetitive model applied to the Greek crisis, which aims both at improving the competitiveness of the Greek productive system and rebalancing the current account balance of the country. Our model of coopetition (based on normal form game theory) is conceived at a macro level, wherein there are two players: Greece and SNC (the Surplus Northern Countries of the euro area). We suggest a model that looks for a win-win solution. The win-win solution entails a cooperative bi-strategy in which SNC should contribute to re-balance its trade surplus with respect to Greece and, in addition,SNC should provide a certain amount of foreign direct investment (FDI) to improve the competitiveness and the growth in Greece. Thus we �nd a transferable utility and properly coopetitive solution, convenient for all the players.

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